Jefferies (JEF) closed at $36.79 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Heading into today, shares of the investment banking and capital markets company had lost 5.75% over the past month, lagging the Finance sector's loss of 1.99% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Jefferies as it approaches its next earnings release. In that report, analysts expect Jefferies to post earnings of $0.64 per share. This would mark a year-over-year decline of 48.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, down 30.94% from the year-ago period.
JEF's full-year Zacks Consensus Estimates are calling for earnings of $3.40 per share and revenue of $5.26 billion. These results would represent year-over-year changes of +0.89% and -13.2%, respectively.
It is also important to note the recent changes to analyst estimates for Jefferies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Jefferies is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Jefferies's current valuation metrics, including its Forward P/E ratio of 11. This represents a premium compared to its industry's average Forward P/E of 9.49.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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